Anyone who lives in San Francisco (or has tried to) knows that a lack of inventory and ever-increasing demand are pushing rents to new heights. According to Trulia, rents in the city were up 17% in April compared to the same time last year, making S.F. the fourth-least affordable market in the country (behind Miami, New York and L.A.).

Trulia found that in order to afford the median $3,450 rent on a 2-bedroom apartment, San Franciscans must spend 51% of the average local paycheck. (Across the bay in Oakland, the fifth-least affordable market, the median 2-bedroom rent of $2,450 requires 46% of the average local wage.)

These higher rents are pushing multifamily sales up to stratospheric new levels as well. According to CoStar, while multifamily sales across the country are within 8% of 2007 peak levels, San Francisco is one of only two markets in the U.S. that is actually higher than its previous peak. These outrageous prices are pushing even longtime owners to put their multifamily properties on the market.

New to the market this week and asking $16 million, 575 Pierce Street is a trophy property that has been in the current owners’ family for over 40 years. But with the market this hot, agent Mirella Webb says the family decided the time was right to sell. “They think the market is better than ever,” she says, adding, “They live in Europe and are getting older.”

The family has used the top-floor, 2,400-square-foot penthouse as a pied a terre when they are in town; it will be delivered vacant at the close of escrow, says Webb. The other 33 units are split between one-bedrooms and studios. The garage has parking for 17 cars (and a motorcycle) and there is laundry onsite. The building is detached on all sides and has gorgeous views from every unit.

The corner property is the largest apartment building on the market right now, so its eventual sales prices will be a bellwether for the multifamily market. The average price in the first quarter of 2014 for 10-plus-unit buildings was about $420 a square foot, according to CoStar data, suggesting a sales price of closer to $14 million for the 32,000-square-foot property. But given that San Francisco multifamily properties, much like single-family homes, are selling well beyond all previous sales figures, 575 Pierce will likely fetch its $16 million asking price — and then some.

“I’ve never seen the market this competitive in my entire career,” says Webb, “and nobody else has either, from what I hear.”

Emily Landes is a writer and editor who is obsessed with all things real estate. She also has a DIY problem that she blogs about at pritical.com.